FG Rejects ₦80 Trillion Borrowing Claim, Blames Naira Revaluation
Wednesday, 22 July 2026
By Atlantic Digest Nigeria Desk
The Federal Government has dismissed claims that it accumulated ₦80 trillion in fresh borrowing, insisting that the reported increase in Nigeria’s public debt largely reflects the revaluation of the naira and accounting adjustments rather than new loans.
Government officials explained that fluctuations in the exchange rate significantly altered the naira value of the country’s external debt when converted from foreign currencies, resulting in a higher debt stock without a corresponding rise in actual borrowing.
According to the government, the changes stem from exchange-rate movements and standard financial reporting practices, which require foreign-denominated liabilities to be recalculated using prevailing market rates. Officials maintained that these adjustments should not be interpreted as evidence that the administration had secured ₦80 trillion in additional loans.
The clarification comes amid growing public and political scrutiny of Nigeria’s debt profile, with opposition figures questioning the government’s fiscal management and raising concerns about the country’s rising debt obligations ahead of the 2027 general elections.
Critics have argued that increasing debt levels could place greater pressure on public finances and debt-servicing costs, while government officials insist that borrowing remains within sustainable limits and is being directed toward infrastructure, economic reforms and development projects.
Economic analysts note that exchange-rate depreciation can significantly inflate the reported value of external debt in local currency, even when the amount owed in foreign currencies remains unchanged. They say such accounting effects have become more pronounced following recent adjustments to Nigeria’s foreign exchange regime.
Despite the government’s explanation, the debate over public debt is expected to remain a key issue in national economic discussions, particularly as policymakers seek to balance fiscal sustainability with the need to finance infrastructure and stimulate economic growth.
The latest rebuttal underscores the administration’s efforts to reassure investors and the public that the increase in the reported debt stock does not necessarily represent a comparable rise in new borrowing, even as calls for greater transparency over public finances continue.
